Exercise 14-1 Common-Size Income Statement [LO14-1) A comparative income statement is given below for Mckenzie Sales, Ltd., of Toronto: Last Year $5,601,200 3,511,500 2,089, 700 McKenzie Sales, Ltd. Comparative Income Statement This Year Sales $7,370,000 Cost of goods sold 4,590,000 Gross margin 2,780,000 Selling and administrative expenses: Selling expenses 1,384,000 Administrative expenses 710,500 Total expenses 2,094,500 Net operating income 685,500 Interest expense 97,000 Net income before taxes $ 588,500 1,079,500 608,500 1,688,000 401, 700 85,000 $ 316,700 Members of the company's board of directors are surprised to see that net income increased by only $271,800 when sales increased by $1,768,800. Required: 1. Express each year's income statement in common-size percentages. (Round your percentage answers to 1 decimal place (i.e., 0.1234 should be entered as 12.3).) This Year Last Year Sales Cost of goods sold Gross margin Selling and administrative expenses: Selling expenses Administrative expenses Total selling and administrative expenses Net operating income Interest expense Net income before taxes